Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract No. 6004660 (Project CS-1968) with Applications Software Technology (AST) LLC. for support for Oracle Supply Chain and Inventory Modules for a duration of 1 year and a total contract amount not-to-exceed $109,220. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of July 20, 2022
Item No. 22-0877
Contract No. 6004660
Contractor: Applications Software Technology (AST) LLC
Address: 4343 commerce Court, Ste 701, Lisle, IL 60532
Contract Amount: $109,220
Contract Term: 8/1/2022 - 7/31/2023
TO: The Honorable, Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Contract No. 6004660
New contract with AST, LLC. For support for Oracle Supply Chain and Inventory Modules
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve Contract No. 6004660 (Project CS-1968) with Applications Software Technology (AST) LLC. for support for Oracle Supply Chain and Inventory Modules for a duration of 1 year and a total contract amount not-to-exceed $109,220. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD recently separated from GLWA’s software platform Oracle WAM for Inventory and Supply Chain Management. DWSD now uses the City of Detroit’s software platform Oracle FUSION ERP for financial management and Oracle Supply Chain Module for the management of inventory. In order to maintain the tight integration between system components, the City of Detroit’s Contract 6003001with AST, LLC includes general support, upgrade planning, implementation and testing.
With the additional module there are additional support costs to ensure that FUSION is running properly with quarterly patch updates. To provide this support, DWSD is required to utilize AST, LLC (Contract 6003001). Having the same vendor support, for Oracle Supply Chain, allows DWSD and COD, the compatibility and integration to be seamless within the main FUSION ERP system.
This new DWSD piggyback contract will provide support during this fiscal year. The current City of Detroit contract with AST, LLC will expire 8/31/23. The City of Detroit plans to publish, a new solicitation and include the additional DWSD support requirements in the bid specifications.
PROCUREMENT METHOD
The DWSD IT Department submitted requisition 498421, that was approved by Budget on 7/7/22, requesting a new contract with AST, LLC, for twelve (12) months for a not-to-exceed amount of $109,220. This contract is being processed as a piggyback on an existing City of Detroit Contract 6003001. Because AST is the existing vendor, DWSD is required to use AST for support services.
DWSD Procurement has confirmed that the vendor has agreed to the request to piggyback off the City’s contract and also confirmed that the DWSD work will not significantly change, alter or remove from their ability to provide services to the City of Detroit.
The vendor’s clearances are approved and expire 9/2/22. Per DWSD procurement protocol, no other approvals are required.
SUMMARY
A. Contract No. 6004660
B. Contractor: Applications Software Technology (AST) LLC
C. DWSD Contract Term: 8/1/2022 - 7/31/2023
D. Contract Amount: $109,220.00
E. Funding Source: O&M
F. GL Strings: 5720-20168-483301-617400-000205-10790-0000-000000 - 38.2%
5820-20179-493301-617400-000226-15805-0000-000000 - 61.8%
G. Projected Contract Expenditures:
FY 22-23: $109,220.00
Proposed Contract No. 6004660 was presented to the BOWC Finance Committee on July 14, 2022. Per the DWSD Procurement Policy, Mayoral Review will also be obtained.